Home Oil and Gas NNPC Spent N100bn On Refineries’ Rehabilitation In 2021

NNPC Spent N100bn On Refineries’ Rehabilitation In 2021

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NNPC Confirms IOCs Exit
NNPC Confirms IOCs Exit

NNPC Spent N100bn On Refineries’ Rehabilitation In 2021.

The Nigerian National Petroleum Company Limited – NNPC – has stated that it will spend N100 billion on refinery repair in 2021, with monies being put into the facilities on a monthly basis last year.

This was revealed in a report on the oil firm’s funding performance from January to December 2021, which was viewed in Abuja on Sunday.

Although no refinery was mentioned in the report, Nigeria’s refineries had been managed by NNPC while one of the facilities, Port Harcourt Refining Company, was being rehabilitated.

Other refineries managed by the NNPC include the Kaduna Refining and Petrochemical Company and the Warri Refining and Petrochemical Company.

According to the NNPC’s most recent financing performance report, N8.33 billion was spent monthly for refinery restoration from January to December 2021.

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The Federal Government has been working to restart the country’s refineries, since Nigeria currently imports the majority of its refined petroleum products.

This has resulted in massive subsidy expenditures by the NNPC, Nigeria’s sole importer of petrol for more than four years and counting.

According to the Sunday PUNCH, the Federal Government has processed $98 million and N17.2 billion as part payments for the continuing restoration of the Port Harcourt Refining Company.

According to the study, the government paid an initial payment of $194 million to Tecnimont SpA of Italy, which was the 15% advance payment necessary for the facility’s renovation.

This was included in the financial status update for the PHRC restoration, as the project was funded by an equity commitment from its sponsor and a loan from lenders (AfreximBank).

According to the report, the Engineering, Procurement, Construction, Installation, and Commissioning contract price remained at $1.397 billion in lump sum with a provisional amount of $162 million, bringing the overall project cost to $1.559 billion, as approved by the Federal Executive Council.

The contract for the EPCIC of the Port Harcourt refinery was authorized by the Federal Executive Council on March 17, 2021, and construction on the plant began last year.

The council authorized the PHRC EPCIC contract award to Tecnimont in March, and the contract agreement was signed on April 6, 2021, according to a report seen in Abuja on Friday, indicating that extra money had been received to support the plant’s continuous restoration.

The Federal Executive Council sanctioned $1.48 billion in August last year for the renovation of both the Warri and Kaduna refineries.

Chief Timipre Sylva, Minister of State for Petroleum Resources, made the announcement at the conclusion of one of the weekly FEC sessions in Abuja.

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